What is a mortgage pre-approval?

A mortgage pre-approval is an important step in the home buying process in California. It is a written evaluation from a lender that states how much you can borrow in order to buy a home. The pre-approval is valid for a certain length of time, typically 60 to 90 days. Getting a mortgage pre-approval is a crucial step for potential home buyers to take in California because it helps them narrow down their home search to only homes that fit within their budget. Without pre-approval, buyers will be wasting time looking at properties they can’t afford. When getting a mortgage pre-approval, a lender will review your income and credit to determine the amount of mortgage you’re eligible for and how much you’re able to borrow based on the loan you’re applying for. They will also typically require an appraisal to ensure that your purchase doesn’t exceed the appraised value of the property. The mortgage pre-approval process can vary based on different lenders, however, it typically consists of submitting a loan application, providing income documentation, and sharing documentation regarding your creditworthiness. It’s important to remember that a pre-approval is not a guarantee of a loan. However, having a pre-approval can give you a competitive edge in the real estate market, as you’ll be able to show sellers that you have already been approved for a loan and have the funds needed to purchase a home.

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What is a mortgage pre-approval?

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